In actual hard currency, there isn"t a lot of "money." Our economic system uses the multiplier effect. That presumes that a portion of the wealth you have in the bank can be loaned to another person who in turn will keep some in the bank and again loaned to another person. So, if the bank reserve amount, that portion that can"t be loaned is twenty percent, 32 K of your 40 K can be loaned and $25,600 loaned again and $20,480 loaned again ad infinitum. So, right here we have your original $40,000 generating another $78,080 in pseudo money.
If you want to find out how much "cash" there is, do a search for M1.
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Today's Featured Article - On the Road with Dave Gohl: Deere Departed Friend - by Dave Gohl. Have you ever had to part with a dear friend? It's not easy. If it's due to death, your feelings could be in disarray for days, months or even years. Even now after almost 4 years, I still miss my dad. I remember when I was a kid my dad sometimes would tuck my brother and I in at night and we would ask him questions about his childhood on the farm. To this day, it's some of the best stories I've ever heard. And now, I'm so glad that I asked those questions, and if I were a little smarter i
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